Apartment in the UAE: how not to overpay? 5 factors that make up the price

Not only in Dubai, but in all emirates, there is a wide range of real estate prices: from AED 520,000 to infinity. Of course, developers do not pluck prices out of the air: the cost of housing 一 is always the result of a thorough analysis of the market. In order to tell customers the difference, you need to have a good understanding of the issue yourself. 

Why such a difference in price?

In the UAE, as anywhere else, the price of real estate is made up by a number of factors. An apartment for AED 520,000 is likely to be located in a remote area, with basic finishing and minimal amenities. While an apartment for AED 50,000,000 is in a prime location, with panoramic views, designer renovations and a full range of amenities. The difference in price is a reflection of the differences in quality, location and comfort level.

So, 5 key factors that determine the price of real estate in the Emirates.

The value of the plot that developer bought

A lot depends on where the developer buys the land for construction. If it is a developed area with good infrastructure, the land will cost more than in a location where construction is just about to begin. The most expensive housing, as a rule, is located in coastal locations, where there is ready infrastructure. For example, Palm Jumeirah, Bluewaters, Dubai Marina, Dubai Creek Harbour. This also includes the business districts 一 Downtown or Business Bay. 

Therefore, an apartment in the center of Dubai or on Palm Jumeirah Island will be many times more expensive than a similar apartment located in a remote area. 

Pelagos Residences by IGO is an elite residential tower with stunning views of the Persian Gulf. Residents are provided with all the necessary amenities for a comfortable life: gym, yoga space, swimming pool, outdoor lounge area and more. Travel time to Dubai Marina Mall is 5 minutes and to Palm Jumeirah is 10 minutes. Dubai International Airport is 20 minutes away.

Price: from AED 3,373,300

Handover: Q1 2026

The key to understanding: the more prestigious the neighborhood and better access to key infrastructure, the higher the price.

The average cost per square meter in the location and the level of demand 

When calculating the price, the developer will always focus on the average cost per square meter in the objects that are located around the site. Where there is a high demand for apartments in general, the developer can raise the price by following the market. 

View from the window

In the UAE, the view from the window is not just an interior detail, but a powerful factor influencing the price. A panoramic view of the sea, popular attractions or a well-maintained park can add hundreds of thousands of dirhams to the price of an apartment. Apartments with a view of the roadway will naturally cost less. 

Remember: a view is an asset that a buyer is willing to pay extra for.

Concept and class of housing 

The price of the apartment is also influenced by the prestige of the residential complex. In economy-class housing, most likely there will be inexpensive finishes, typical layouts, a standard set of additional services. In the premium segment, the owners will get much more: a Smart Home system, collaborations with brands, built-in appliances of premium class. Housing in such complexes is usually 20% more expensive than in the more budget segment. 

Kentia Residence by GJ is a modern residential complex in Ajman with bright and spacious layouts. On the territory of the complex there are basic amenities: swimming pool, gym, parking lot. The project is advantageously located near the intersection of two highways - Sheikh Mohammed Bin Zayed Road and Al Hamriyah Road. The journey to Sharjah International Airport will take 23 minutes, to Dubai International Airport - 40 minutes.

Price: from AED 605,681

Handover: Q3 2025

The availability of additional amenities and developed infrastructure in and around the house also affects the price. Infinity-pool, gym, playground, parking, 24-hour security, concierge service and proximity to stores, restaurants and public transportation increase the attractiveness of the apartment and, accordingly, its price. 

Mandarin Oriental Residences by Aldar is a luxury project in Abu Dhabi that blends Arabian culture and modern design. The exquisite interiors have been created by New York-based designer Lilian Wu. Facilities and activities are available to suit every taste: fitness room, squash court, children's playroom, separate swimming pools for children and adults, spa, grooming salon and others. Additional services are also available to residents: private catering, cleaning service, concierge, private chef, elite transportation, etc. The Louvre Abu Dhabi is a 4-minute drive away and the Abu Dhabi Mall is 14 minutes away. Zayed International Airport is 25 minutes away.

Price: from AED 12,105,658

Handover: Q3 2028

Don't forget: comfort and convenience is also a natural expense.

Design and marketing costs

Creating a unique and attractive project requires significant investment. The developer hires architects and engineers to develop the concept, master plan and design of the building. The more innovative and complex the facility, the higher the design costs. For example, the use of eco-friendly materials, modern engineering solutions and unique facade appearance increase the attractiveness of the facility, but also increase the cost of design.

Also, to attract buyers, developers actively promote their project. Marketing expenses include: advertising campaigns, creation and maintenance of the project website, organization of events, image and brand positioning.

Thus, the more active and more extensive the marketing campaign, the higher the costs. The developer, seeking to recoup these investments, also includes them in the price per square meter. In addition, successful marketing creates demand for the object, which allows the developer to set higher prices. 

Conclusion

Much of the variation in real estate prices in the UAE is due to a combination of these factors:

• land cost, 
• location, 
• view from the window, 
• the class of housing and the availability of additional amenities, 
• design and marketing costs. 

Understanding what exactly makes up the cost of housing in the UAE will allow you to find the best option for your buyers and make a balanced decision before buying.